Interim 中期報告: Stock Code: 0788 0788

CHINA TOWER CORPORATION LIMITED 中國鐵塔股份有限公司
中國鐵塔股份有限公司中國鐵塔股份有限公司
（於中華人民共和國註冊成立的股份有限公司） (A joint stock company incorporated in the People’s Republic of China with limited liability)
股份代號: 0788 Stock Code: 0788
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INTERIM REPORT 2018 中期報告
中期 I NT ERIM
報告 R EPORT
Contents
2 Highlights
3 Chairman’s Statement
7 Financial Overview
9 Report on Review of Interim Financial Information
10 Unaudited Interim Condensed Statement of Comprehensive Income
11 Unaudited Interim Condensed Balance Sheet
13 Unaudited Interim Condensed Statement of Changes in Equity
14 Unaudited Interim Condensed Statement of Cash Flows
15 Notes to Unaudited Interim Condensed Financial Information
36 Other Information
2 INTERIM REPORT 2018
Highlights
Operating revenue was RMB35,335 million with a stable growth, up by 6.2%, of which
• Revenue from tower business was RMB34,064 million, up by 3.8%
• Revenue from indoor distributed antenna system (“DAS”) business was RMB824 million, up by 94.3%
• Revenue from trans-sector site application and information (“TSSAI”) business increased from RMB22 million
(1H2017) to RMB374 million (1H2018)
Profitability improved continuously; EBITDA* was RMB20,907 million; EBITDA margin* was 59.2%
Profit increased rapidly; operating profit was RMB4,760 million, up by 15.9%; Profit attributable to the owners of the
Company was RMB1,210 million, up by 8.0%
C H I N A T O W E R C O R P O R AT I O N L I M I T E D
Free cash flow* was RMB9,068 million which was improved significantly
Total number of sites was 1.898 million; and total number of tenants reached 2.785 million. The tenancy ratio was
1.47 which showed that site co-location improved continuously
Operating revenue
(RMB million) 1H2017: 1H2018:
33,272 35,335
EBITDA*
19,907 20,907
Profit attributable to the owners of the Company

1,120 1,210
* EBITDA is the operating profit plus depreciation and amortization; EBITDA margin is calculated by dividing EBITDA by operating revenue, and multiplying the
resulting value by 100%; Free cash flow is the net cash generated from operating activities minus the capital expenditures.
INTERIM REPORT 2018
3
Chairman’s Statement
Dear Shareholders,
China Tower Corporation Limited (the “Company” or “we”) was listed on the Main Board of The Stock Exchange of Hong
Kong Limited (the “Hong Kong Stock Exchange”) on 8 August 2018. Our initial public offering proved a success, with the
level of participation and investment from a great number of renowned domestic and international organizations providing a
resounding vote of confidence by the capital markets in both our business model and our future prospects. On behalf of the
board of directors of the Company (the “Board”), I want to express our heartfelt gratitude to our shareholders and the wider
community for their support.
As the world’s largest telecommunications tower infrastructure service provider, we continued to reinforce our commanding
industry leadership in China and proactively expanded our business lines to diversify our revenue streams. We also
increased our level of resources sharing and sophisticated management. Collectively, these aspects have helped us achieve
encouraging financial results in the first half of 2018. Our operating revenue recorded stable growth, along with the promotion
in operating efficiency and profitability, and our cash flows have been substantially improved. The Company is demonstrating
a rapid and healthy growth trend.
FINANCIAL PERFORMANCE
In the first half of 2018, our revenue maintained a stable growth, recording operating revenue of RMB35,335 million, up by
6.2% over the same period last year. Operating profit(1) increased rapidly, and reached RMB4,760 million, up by 15.9% over
the same period last year. Our net profit(2) was RMB1,210 million for this period, up by 8.0% over the same period last year,
EBITDA(3) was RMB20,907 million and EBITDA margin increased from 58.8% for the year 2017 to 59.2% during this period,
underscoring stronger profitability.
In the first half of 2018, our net cash flows from operations reached RMB17,173 million, and capital expenditures(4) amounted
to RMB8,105 million. Our free cash flows have significantly improved and amounted to RMB9,068 million. As of 30 June
2018, our total assets amounted to RMB328,774 million and our gearing ratio(5) stood at a healthy and controllable level of
54.1%.
BUSINESS PERFORMANCE
Our tower business achieved stable growth in the first half of 2018 while DAS business, as well as TSSAI business expand
rapidly. Such multiple driving forces has been developed to reinforce the business growth of the Company. While maintaining
fast growth in overall revenue, we gradually diversified our revenue streams. Contribution to our operating revenue from other
businesses including DAS business and TSSAI business increased to 3.6% from 1.4% for the same period last year. At the
end of June 2018, we managed 1.898 million sites and served 2.785 million tenants. The tenancy ratio was 1.47, increased
from 1.44 at the end of 2017, showing a continued improvement in site co-location efficiency.
(I) Adhered to sharing strategy, reinforced commanding industry leadership in tower business
Driven by a strong demand for deeper and broader 4G network coverage, our tower business recorded revenue of
RMB34,064 million, representing an increase of 3.8% compared to the same period last year and accounting for 96.4%
of our total operating revenue. The tower business remains our major source of revenue. By the end of June 2018, we
had 1.879 million tower sites and 2.70 million tower tenants.
With the ongoing support of the government at all levels, as well as related sectors, we continued to implement our
strategy of transforming public utility towers and poles into telecommunications towers. By doing so, we were able to
include public resources such as utility poles, lamp poles and surveillance poles as we expanded our site resources.
Through a more proactive approach to the sharing of existing and new site resources, we effectively fulfilled market
demand while achieving reasonable savings in construction costs. By the end of June 2018, 71% of the new leases
from the three telecommunications service providers in China (the “Three TSPs”)(6) were served on a co-location basis,
creating a significant positive impact on our overall performance.
(II) Improved ability to satisfy customers’ demands, sped up the development of DAS business
We actively pursued DAS projects in commercial buildings, large venues, subways and high-speed railways, covering a
cumulative length of more than 13,000 kilometers of high-speed railways and 1,900 kilometers of subways, as well as
large venues with a cumulative area of more than one billion square meters. In the first half of 2018, our DAS business
recorded revenue of RMB824 million, representing an increase of 94.3% compared to the same period last year, and its
contribution to our total operating revenue increased to 2.3% from 1.3% for the same period last year.
(III) Leveraged site resources to expand TSSAI business

By leveraging our site resources across the country, stable power supplies, centralized maintenance platform and
efficient communications, we promote the transformation of telecommunications towers into public utility towers and
poles to provide a wide range of services to fulfil the specific needs of our customers across multiple sectors. Our
service offerings covered more than 16 industry applications, including environmental monitoring, maritime surveillance,
seismic monitoring and satellite ground signal enhancement. By the end of June 2018, we had 57 thousand TSSAI
tenants, up from 19 thousand at the end of 2017. Our TSSAI business recorded revenue of RMB374 million, more than
twice of the revenue for the full year of 2017.
There has been a growing trend for the Three TSPs to take a holistic approach service to coverage, combining macro cells
and small cells, as well as indoor and outdoor network. In view of this, and as an extension of our resource-sharing and
coordination strategy, we developed integrated wireless communications coverage solutions in order to further enhance our
operations and service capacity.
INTERIM REPORT 2018
5
CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY
In the first half of 2018, we elected a new session of the Board and introduced independent directors who are well-known
individuals with rich expertise and management experience in telecommunications, finance and business. The initiative
improved our Board structure and corporate governance with sound mechanisms and due processes.
We have always placed great emphasis on fulfilling our social responsibility and contributing to our customers and the
society. By extending communications infrastructure into rural areas and the western region of China, we helped narrow
the information divide. Contributing to the national initiative of building a ‘Beautiful China’, we coordinated the construction
of towers with the environment of cities. We are committed to green and low-carbon development by saving energy and
reducing emissions. In response to the national strategy to develop new energy, we kicked off large-scale pilot schemes to
expand the application of retired electric vehicle batteries. Our efforts to provide uninterrupted power supply and maintenance
services to the Three TSPs and TSSAI customers and support emergency communications have also won us wide recognition
from customers and the public.
OUTLOOK
Information and communications infrastructure is playing an increasingly strategic and pioneering role as China is developing
into a ‘Cyber Power’ and is promoting to build a ‘Digital China’. At the same time, booming wireless Internet alongside rising
information and communications consumption, as well as demand for wider and deeper 4G coverage and the promising
prospects presented by the migration to 5G have all given rise to ample room for development for the Company. We
are poised to capture these opportunities and feel confident about our future. We are committed to driving healthy and
sustainable growth of the Company by accelerating our pace of development, promoting our resources-sharing strategy and
enhancing our specialized management.
(I) Reinforce commanding industry leadership and realize sustainable growth

Anticipating the trend towards 5G network development, we will strengthen our ability to provide integrated wireless
coverage solutions to reinforce our commanding leadership in tower business. We will coordinate our resources to
satisfy the specific demands of the Three TSPs in network coverage, in order to rapidly advance our development in the
DAS business. We will leverage our existing site resources and focus on providing tower and digital information services
to key customers in major sectors so as to diversify our customer base and revenue structure, while nurturing new
growth prospects.
(II) Promote resources-sharing strategy to create higher value

Our resources-sharing strategy will continue to help us maximize our advantages and enhance the level of co-location
at our existing sites. At the same time, we will expand the scope of resources sharing from traditional tower sites to
shelters and ancillary facilities, power, transmission and maintenance service, in order to generate more value from
sharing. We will also promote social resources sharing by further securing support from all levels of government and
coordinating the use of tens of millions of public utility towers and poles to meet market demand in a more cost-
effective manner. We will continue to promote trans-sector sharing of resources. Following the development of the
‘Internet of Everything’, we will extend our tower services towards high-value integrated information services to identify
opportunities for value enhancement.
(III) Implement sophisticated management to support effective operations

We will introduce innovative management models, operating mechanisms and information support to enhance our
competency in sophisticated management, operations and services. We will continue to review and accurately assess
the financial performance of individual site with an aim to enhance site efficiency and profitability. We will better manage
our assets throughout their life cycle and perform precise operations to maximize their value. We will also introduce
Internet-based management systems to enhance operating efficiency and support our fast-developing business.
With our shareholders’ support, our close relationship with customers, a resources-sharing business model, valuable site
resources, a clear strategic goal and a team of high-quality employees, we are confident that our Board, management team
and all of our employees can work together to capture the development opportunities and diligently deliver outstanding
business results for our shareholders, while creating value for society.
Finally, on behalf of the Board, I want to take this opportunity to thank our investors for their trust and support. I am grateful
to all our shareholders, customers and members of our wider community for their long-standing support and thank all our
employees for their hard work and dedication. I would also like to thank the first session of the Board, led by former Chairman
Liu Aili, for the outstanding performance and enormous contribution it has made to the Company.
Tong Jilu
Chairman and General Manager
Beijing, China, 10 August 2018
Note:
1. Operating profit is the operating revenue minus the operating expenses.
2. Net Profit for the period refers to profit attributable to owners of the Company.
3. EBITDA represents profit for the period before finance costs, interest income, other gains, income tax, depreciation and amortisation. As the industry in
which the Company operates is capital intensive, capital expenditures and finance costs may heavily influence the Company’s profit and that of other
similarly situated companies. Therefore, the Company believes that EBITDA may be helpful in analysing the Company’s results of operations and those of the
Company’s peers.
4. Capital expenditures represent the addition of the Company’s property, plant and equipment, land use right and software that recorded in the Company’s
balance sheet.
5. Gearing ratio is calculated by dividing net debt (total interest bearing liabilities net of cash and cash equivalents) by the sum of total equity and net debt, and
multiplying the resulting value by 100%.
6. The Three TSPs refer to China Mobile Communication Company Limited and its subsidiaries, China United Network Communications Corporation and China
Telecom Corporation Limited.

INTERIM REPORT 2018
7
Financial Overview
OPERATING REVENUE
The Company insists on business growth by applying the “sharing” philosophy, continuously deepens the site co-location
within the telecommunications tower infrastructure industry and further expands market opportunities by providing diversified
services to customers in different industries. The Company’s revenue maintained a stable growth in the first half of 2018,
recording operating revenue of RMB35,335 million, up by 6.2% over the same period last year, of which revenue from tower
business reached RMB34,064 million, up by 3.8% over the same period last year; revenue from DAS business reached
RMB824 million, up by 94.3% over the same period last year; revenue from TSSAI business increased rapidly to RMB374
million from RMB22 million in the same period last year. The revenue from non-tower business accounted for 3.6% of total
operating revenue in the first half of 2018, increased from 1.4% of total operating revenue in the same period last year,
representing that the model of revenue growth with multiple driving forces has been developed initially.
OPERATING EXPENSES
The Company’s business and operation are continuously driven by innovation and services, and focus on improvement of
comprehensive service capabilities. The Company achieved an efficient operation with lower costs through the individual site
sophisticated management, “E-maintenance” model and countrywide centralized maintenance monitoring platform. In the first
half of 2018, the operating expenses were RMB30,575 million, up by 4.8% over the same period last year, include:
• Depreciation and amortisation

The Company consistently improves the site co-location for newly constructed sites and actively addresses needs of
network constructions from customers. In the first half of 2018, the Company’s depreciation and amortisation were
RMB16,147 million, up by 2.2% over the same period last year.
• Site operating lease charges

To effectively control site operating lease charges, the Company reinforces the management of renewal of site rental
contracts by controlling the increase of rent rates and strives for the support from the government and other third
parties in the low-cost site resources acquisition. With the increase in numbers of sites, the site operating lease charges
were RMB6,021 million in the first half of 2018, up by 7.3% over the same period last year.
• Repair and maintenance

With the comprehensive coverage of the maintenance monitoring platform, the Company provides precise maintenance
services and breakdown handling, and improves the efficiency of maintenance. In the first half of 2018, the repair and
maintenance expenses were RMB2,990 million, up by 5.1% over the same period last year, primarily due to the increase
of numbers of sites that put into use.
Financial Overview
• Employee benefits and expenses

The Company continuously focuses on the improvement of the operation efficiency and the productivity by adhering to
the principle of flat organization and maintaining an efficient and high-quality team of employees. In the first half of 2018,
the employee benefits and expenses were RMB2,478 million, up by 13.9% over the same period last year, since the
effect of the incremental labor cost in the second half of 2017 was carried forward to the first half of 2018 due to the
Company’s workforce expansion in 2017.
• Other operating expenses

Due to the increase in numbers of sites and tenants, as well as the coverage expansion of the power and environment
monitoring devices (namely smart FSUs), the other operating expenses, such as power generation charges, site
operation and support expenses and loss on disposal of property and equipment were RMB2,939 million, up by 7.6%
over the same period last year.
FINANCE COSTS
As impacted by the credit squeeze environment of the finance market, the comprehensive finance cost of the Company rose
from last year. The finance costs reached RMB3,268 million in the first half of 2018, up by 26.6% over the same period last
year.
PROFITABILITY
In the first half of 2018, due to the increase of revenue and the effective control of operating expenses, the Company’s
operating profit reached RMB4,760 million, up by 15.9% over the same period last year; the profit for this period was
RMB1,210 million, up by 8.0% over the same period last year; EBITDA was RMB20,907 million, up by 5.0% over the same
period last year; EBITDA margin increased to 59.2% in this period from 58.8% in 2017.
CAPITAL EXPENDITURE AND CASH FLOW
As 4G network construction slows down, the demand from telecommunications service providers decreased. In addition, the
Company also promotes the transformation of the construction model to effectively control the construction cost and boost
the Company’s free cash flow by making extensive use of social resources as well as providing integrated service solutions for
indoor and outdoor wireless communications coverage through a mix of macro cells and small cells. In the first half of 2018,
the Company’s net cash generated from operating activities was RMB17,173 million, the capital expenditure was RMB8,105
million and free cash flow was RMB9,068 million.
BALANCE SHEET STATUS
As at 30 June 2018, the balance of the Company’s total assets were RMB328,774 million, net debts were RMB151,938
million, and gearing ratio was 54.1%.
INTERIM REPORT 2018
9
Report on Review of Interim Financial Information
To the Board of Directors of China Tower Corporation Limited

(Incorporated in People’s Republic of China with limited liability)
Introduction
We have reviewed the interim financial information set out on pages 10 to 35, which comprises the interim condensed balance
sheet of China Tower Corporation Limited (the “Company”) as at 30 June 2018 and the related interim condensed statements
of comprehensive income, changes in equity and cash flows for the six-month period then ended, and a summary of significant
accounting policies and other explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong
Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions
thereof and International Accounting Standard 34 “Interim Financial Reporting”. The directors of the Company are responsible
for the preparation and presentation of this interim financial information in accordance with International Accounting Standard
34 “Interim Financial Reporting”. Our responsibility is to express a conclusion on this interim financial information based on our
review and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement and for no
other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim
Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial information consists of
making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on
Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not
prepared, in all material respects, in accordance with International Accounting Standard 34 “Interim Financial Reporting”.
Other Matter
The comparative information for the interim condensed balance sheet is based on the audited financial statements as at 31
December 2017. The comparative information for the interim condensed statements of comprehensive income, changes in
equity and cash flows, and related explanatory notes, for the six-month period ended 30 June 2017 has not been audited or
reviewed.
PricewaterhouseCoopers
Certified Public Accountants
Hong Kong, 10 August 2018

Unaudited Interim Condensed Statement of

Comprehensive Income
For the six months ended 30 June 2018
(Expressed in Renminbi (“RMB”))
Unaudited
Six months ended 30 June
Note 2018 2017
RMB million RMB million
Operating revenue 6 35,335 33,272
Operating expenses
Depreciation and amortisation (16,147) (15,799)
Site operating lease charges (6,021) (5,611)
Repairs and maintenance (2,990) (2,846)

Employee benefits and expenses 7 (2,478) (2,176)
Other operating expenses 8 (2,939) (2,732)
(30,575) (29,164)
Operating profit 4,760 4,108

Other gains 28 40
Interest income 65 42
Finance costs 9 (3,268) (2,582)
Profit before taxation 1,585 1,608

Income tax expenses 10 (375) (488)
Profit for the period and Profit attributable to the owners

of the Company 1,210 1,120
Other comprehensive income, net of tax — —
Total comprehensive income for the period 1,210 1,120
Basic and diluted earnings per share (in RMB Yuan)

Basic/diluted 11 0.0094 0.0087
The notes on pages 15 to 35 are an integral part of this interim financial information.
INTERIM REPORT 2018
11
Unaudited Interim Condensed Balance Sheet

As at 30 June 2018
(Expressed in RMB)
Unaudited Audited
As at 30 June As at 31 December
Note 2018 2017
Assets
Non-current assets
Property, plant and equipment 12 251,939 258,138
Construction in progress 12 8,630 10,930
Long-term prepayments 13 12,761 9,910
Deferred income tax assets 605 689
Other non-current assets 14 12,580 12,459
286,515 292,126
Current assets
Inventories 1 28
Trade and other receivables 15 19,386 15,262
Prepayments and other current assets 16 7,997 7,375
Cash and cash equivalents 17 14,875 7,852
42,259 30,517
Total assets 328,774 322,643
Equity and liabilities

Equity attributable to owners of the Company
Share capital 18 129,345 129,345
Accumulated deficits (640) (1,850)
Total equity 128,705 127,495
Unaudited Interim Condensed Balance Sheet (continued)

As at 30 June 2018
(Expressed in RMB)
Unaudited Audited
As at 30 June As at 31 December
Note 2018 2017
Liabilities
Non-current liabilities
Borrowings 19(a) 52,060 43,793
Deferred revenue 20 1,170 1,314
53,230 45,107
Current liabilities
Borrowings 19(a) 99,016 95,260
Deferred consideration payables 19(b) 15,737 17,252
Deferred revenue 20 32 29
Accounts payable 21 28,370 31,906
Accrued expenses and other payables 22 3,277 5,371
Current income tax payable 407 223
146,839 150,041
Total liabilities 200,069 195,148
Total equity and liabilities 328,774 322,643
INTERIM REPORT 2018
13

Changes in Equity
(Expressed in RMB)
Unaudited
Attributable to owners of the Company
Share Accumulated Total
capital deficits equity
RMB million RMB million RMB million
Balance at 1 January 2017 129,345 (3,793) 125,552
Profit for the period — 1,120 1,120

Other comprehensive income — — —
Total comprehensive income for the period — 1,120 1,120
Balance at 30 June 2017 129,345 (2,673) 126,672
Balance at 1 January 2018 129,345 (1,850) 127,495
Profit for the period — 1,210 1,210

Other comprehensive income — — —
Total comprehensive income for the period — 1,210 1,210
Balance at 30 June 2018 129,345 (640) 128,705

Cash Flows
(Expressed in RMB)
Unaudited
2018 2017
Cash flows from operating activities

Cash generated from operations 17,211 18,904
Income tax paid (103) —
Interest income received 65 42
Net cash generated from operating activities 17,173 18,946
Cash flows from investing activities

Purchase of property and equipment (14,834) (24,808)
Purchase of land use right and other non-current assets (32) (31)
Proceeds from disposal of property and equipment 40 38
Net cash used in investing activities (14,826) (24,801)
Cash flows from financing activities

Proceeds from borrowings 36,380 18,720
Repayments of borrowings (24,514) (21,773)
Payments of deferred consideration (including value-added tax)
for acquisition of Tower Assets (1,515) —
Interest paid for interest-bearing liabilities (5,675) (623)
Net cash generated from/(used in) financing activities 4,676 (3,676)
Net increase/(decrease) in cash and cash equivalents 7,023 (9,531)

Cash and cash equivalents at beginning of period 7,852 17,249
Cash and cash equivalents at end of period 14,875 7,718
Significant non-cash transactions:
For the additions of construction in progress, the Company recorded accounts payable of approximately RMB19,630 million to
equipment and construction suppliers as at 30 June 2018 (31 December 2017: approximately RMB26,706 million).
INTERIM REPORT 2018
15
Notes to Unaudited Interim

Condensed Financial Information
(Expressed in RMB unless otherwise indicated)
1 General information
China Tower Corporation Limited (中國鐵塔股份有限公司, the “Company”) was established by China Mobile
Communication Company Limited (“China Mobile Company”), China United Network Communications Corporation
Limited (“China Unicom Corporation”) and China Telecom Corporation Limited (“China Telecom”) (the three
telecommunications service providers in China collectively hereinafter referred to as the “Three TSPs”) on 15 July 2014
as a limited liability company in the People’s Republic of China (the “PRC”), with a total registered capital of RMB10,000
million. Upon its establishment, China Mobile Company, China Unicom Corporation and China Telecom subscribed for
4,000 million shares, 3,010 million shares and 2,990 million shares of the Company respectively, in cash at a par value of
RMB1.00 per share, which accounted for 40%, 30.1% and 29.9% of equity interests in the Company respectively.
In 2015, the share capital of the Company was increased to RMB129,345 million, after an acquisition of certain
telecommunications towers and related assets (the “Tower Assets”) from the Three TSPs and new shares issuance
to a new investor, China Reform Holdings Corporation Ltd. (“China Reform”). China Mobile Company, China Unicom
Corporation, China Telecom and China Reform held 38.0%, 28.1%, 27.9% and 6.0% of the equity interests in the
Company respectively as at 31 December 2015, 2016 and 2017 and 30 June 2018.
On 8 August 2018, the Company completed its H shares global offering with an issuance of 43,114,800,000 new shares
(subject to the over-allotment option) on the Main Board of The Stock Exchange of Hong Kong Limited (the “Global
Offering”), and the offer price was HK$1.26 per share. As at the reporting date, 10 August 2018, the over-allotment
option has not been exercised.
The Company provides telecommunications tower infrastructure services in mainland China. The principal activities of
the Company are the construction and operation of telecommunications towers, the provision of telecommunications
tower site space (the “provision of Site Space”); the provision of maintenance services (“Maintenance services”) and
power services (“Power services”); the provision of indoor distributed antenna systems (“DAS”) and other trans-sector
site application and information services (“TSSAI business”). The provision of Site Space, the Maintenance services and
the Power services for tower sites are collectively referred to as the “Tower business”. The Company’s headquarter is in
Beijing, with 31 provincial branches operating across mainland China.
This unaudited interim condensed financial information is presented in RMB, unless otherwise stated. This unaudited
interim condensed financial information was approved by the board of directors of the Company for issuance on 10
August 2018.
The Company’s interim condensed financial information for the six months ended 30 June 2018 has been reviewed, not
audited.
Notes to Unaudited Interim Condensed Financial Information (continued)

2 Basis of preparation
This unaudited interim condensed financial information for the six months ended 30 June 2018 has been prepared in
accordance with International Accounting Standard (“IAS”) 34, “Interim financial reporting”, issued by the International
Accounting Standards Board (“IASB”).
The unaudited interim condensed financial information should be read in conjunction with the audited financial information
of the Company for the years ended 31 December 2015, 2016 and 2017 and three months ended 31 March 2018 as set
out in the accountant’s report (the “Accountant’s Report”) included in Appendix I to the prospectus of the Company in
connection with the Global Offering dated 25 July 2018. The Company’s policies on financial risk management were set
out in the Accountant’s Report and there have been no significant changes in the financial risk management policies for
the six months ended 30 June 2018.
The unaudited interim condensed financial information does not include all of the information required for a full set of
financial statements prepared in accordance with International Financial Reporting Standards (“IFRSs”).
2.1 Going concern
At 30 June 2018, the Company’s current liabilities exceeded its current assets by RMB104,580 million (31
December 2017: RMB119,524 million).
Given the current economic conditions and based on the Company’s future operating plans and the expected levels
of capital expenditure, management has comprehensively considered the following available sources of funds:
• The Company’s continuous net cash inflows from operating activities;
• The available committed, unrestricted and unutilized revolving bank credit facilities of RMB159,945 million as
at 30 June 2018; and
• The net proceeds from the Global Offering and other available sources of financing from domestic banks and
other financial institutions.
Based on management’s operating and financial plans, the directors of the Company are of the opinion that the
Company has adequate funds to continue its operations and to repay its debts when they fall due, and thus
concluded that the Company will be able to meet its obligations for the twelve months after 30 June 2018.
Accordingly, the unaudited interim condensed financial information has been prepared on the basis that the
Company will continue as a going concern.
INTERIM REPORT 2018
17

3 Significant accounting policies
(a) New Standards and Amendments to Existing Standards Adopted by the Company
The accounting policies applied in the preparation of this unaudited interim condensed financial information are
consistent with those used in the preparation of the audited financial information for the years ended 31 December
2015, 2016 and 2017 and three months ended 31 March 2018 as set out in the Accountant’s Report.
The Company has already adopted IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with
Customers” upon its first time adoption of IFRSs prior to 1 January 2018.
(b) New Standards and Amendments to Existing Standards that have been Issued but are not
yet effective and have not been early adopted by the Company
The following new standards and amendments to existing standards have been issued and are mandatory for the
Company’s accounting periods beginning on or after 1 January 2019 or later periods, but the Company has not
early adopted them:
New standards, amendments and interpretations Published date Effective date
IFRS 16 Leases January 2016 Annual periods beginning on

or after 1 January 2019
IFRS 17 Insurance contracts February 2018 Annual periods beginning on
or after 1 January 2021
IFRIC 23 Uncertainty over income June 2017 Annual periods beginning on
tax treatments or after 1 January 2019
IAS 19 ‘Employee benefits’ on plan February 2018 Annual periods beginning on
amendment, curtailment or after 1 January 2019
or settlement
Amendments to IFRS 10 Sale or contribution assets September 2014 To be determined
and IAS 28 between an investor and
its associate or joint venture
Amendments to IFRS Annual Improvements to December 2017 Annual periods beginning on
IFRSs 2015–2017 Cycle or after 1 January 2019
Amendment to IAS 28 Long term interests in October 2017 Annual periods beginning on
associates and joint or after 1 January 2019
ventures
Amendment to IFRS 9 Prepayment features with October 2017 Annual periods beginning on
negative compensation or after 1 January 2019

3 Significant accounting policies (continued)
(b) New Standards and Amendments to Existing Standards that have been Issued but are not
yet effective and have not been early adopted by the Company (continued)
None of the above new standards or amendments to IFRS is expected to have a significant effect on the financial
information of the Company, except for the IFRS 16, “Leases”.
The scopes, areas and approaches of the management’s assessment of the impact of IFRS 16 were set out in
the Accountant’s Report. In order to adopt IFRS 16 by the mandatory effective date, the Company has started to
upgrade the business processes and will continue to assess the impact on its financial statements. The Company
expects that, as a lessor, there will be no significant impact of the adoption of IFRS 16 on its financial statements.
As a lessee, given that the operating lease commitments account for over 10% of the total liabilities of the Company
as at 30 June 2018 and the provision of the sub-lease arrangement, the Company expects that the adoption of
IFRS 16 would result in a significant increase of the Company’s assets and liabilities. The Company does not intend
to adopt IFRS 16 before its mandatory effective date.
4 Changes in accounting estimates
The preparation of interim condensed financial information requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing the interim condensed financial information, the significant judgements made by management in applying the
Company’s key sources of estimation uncertainty were the same as those that applied to the Company’s audited financial
information for the years ended 31 December 2015, 2016 and 2017 and three months ended 31 March 2018 as set out
in the Accountant’s Report.
Changes of estimated useful life of self-built ground telecommunications towers
At the end of each reporting period, the Company reassesses and reviews the estimated useful lives and residual
values of its property, plant and equipment. At the end of December 2017, the Company reassessed the estimated
useful lives of its towers assets by considering various factors, including the change of construction standards
(e.g. the construction materials and methodology used) for its self-built ground telecommunications towers (the “Self-
built Towers”), the assessment of future technological requirements of the 5G communication networks, as well as the
issuance of favourable government regulations such as the inclusion of certain telecommunications towers into the urban-
rural development plans in the PRC. After the aforementioned reassessment, the Company has concluded to change
the estimated useful lives of the Self-built Towers from 10 years to 20 years and account for this change of accounting
estimates prospectively, starting from 1 January 2018. For the acquired towers from the Three TSPs and their parents in
2015, their estimated useful lives of 10 years will remain unchanged.
After the change of this accounting estimate on 1 January 2018, the depreciation expenses of the Company’s Self-built
Towers have decreased by RMB1,189 million for the six months ended 30 June 2018.
INTERIM REPORT 2018
19

5 Segment reporting
The executive director and senior management, as a decision making group, is the Company’s Chief Operating Decision
Maker (the “CODM”). The Company has determined the operating segments based on the information reviewed by the
CODMs for the purposes of allocating resources and assessing performance. For the periods presented, the Company as
a whole is an operating segment since the Company is only engaged in telecommunications tower infrastructure services
and related businesses.
All of the Company’s long-lived assets are located in the mainland China and all the Company’s revenues and operating
profits are derived from the mainland China during the periods presented. Therefore, no geographical information has
been disclosed.
6 Operating revenue
The table below summarises the Company’s operating revenues by business types:
Unaudited
2018 2017
Tower business (Note (i)) 34,064 32,817

— Macro cell business 33,888 32,718
— Small cell business 176 99
DAS business 824 424
TSSAI business 374 22
Others 73 9
35,335 33,272

6 Operating revenue (continued)
Note:
(i) The table below summarises the Company’s Tower business revenue by nature:
Unaudited
2018 2017

Revenue from the provision of Site Space 28,614 27,718
Revenue from Services* 5,450 5,099
34,064 32,817
* Revenue from Services primarily comprises of Maintenance services revenue and Power services revenue.
For the six months ended 30 June 2018, the revenue generated from the Three TSPs accounted for 99.1% of the total revenue (for the six months
ended 30 June 2017: 99.9%).
(ii) In early 2018, after negotiations on arm’s length basis, the Company entered into a supplemental agreement (the “Supplemental Agreement”) to
commercial pricing agreements (the “Commercial Pricing Agreements”) with each of the Three TSPs to amend certain pricing terms of the previous
Commercial Pricing Agreements. The key amendments are the reduction of cost-plus margin and increase of co-location discount rates for Tower
business. The Supplemental Agreement to the Commercial Pricing Agreements has a term of five years and expires on 31 December 2022. These
amendments have replaced the related terms previously set out in the Commercial Pricing Agreements as disclosed in the Accountant’s Report.
7 Employee benefits and expenses
Unaudited
2018 2017
Salaries and welfare 1,929 1,682

Retirement benefits 280 256
Contributions to medical insurance 147 132
Contributions to housing fund 122 106
2,478 2,176
INTERIM REPORT 2018
21

8 Other operating expenses
Other operating expenses mainly represent power generation charges, site operation and support expenses, loss on
disposal of property and equipment, operating leasing charges for office premises (as lessee), property management
expenses and utilities, other taxes and surcharges (excluding value-added tax and income tax), professional fees and
other miscellaneous expenses (such as travelling and communications expenses).
Unaudited
2018 2017
Power generation charges 1,071 947

Site operation and support expenses 887 701
Loss on disposal of property and equipment 344 503
Office lease, property management expenses and utilities 307 270
Other taxes and surcharges 74 86
Others 256 225
2,939 2,732
9 Finance costs
Unaudited
2018 2017
Interest on borrowings and asset-backed notes 3,014 713

Interest on deferred consideration payables 343 1,992
Less: Amounts capitalised in construction in progress (Note) (89) (123)
3,268 2,582
Note:
The interest rate range of amounts capitalised in construction in progress for the six months ended 30 June 2018 are 4.14%–4.42% per annum (for the six
months ended 30 June 2017: 3.06%–3.62% per annum).


10 Income tax expenses
The Company and its provincial branches file the PRC enterprise income tax on a consolidated basis. The provision
for the PRC enterprise income tax is based on the applicable tax rate on the estimated taxable profits determined in
accordance with the relevant enterprise income tax rules and regulations of the PRC.
Taxation in the statement of comprehensive income represents:
Unaudited
2018 2017
Current tax
Current tax on estimated taxable profits for the period 291 322
Deferred tax
Origination or reversal of temporary differences 84 166
Income tax expenses 375 488
The provision for the PRC enterprise income tax is based on the statutory tax rate of 25% on the estimated taxable profits
determined in accordance with the relevant income tax rules and regulations of the PRC for the six months ended 30
June 2018 (for the six months ended 30 June 2017: 25%).
According to the circular of “Deeply Implementation of the western development strategy taxation policy” (Caishui [2011]
No.58) issued by the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs
of the PRC and relevant PRC enterprise income tax regulations, entities that are qualified and located in certain western
provinces of mainland China are entitled to a preferential income tax rate of 15%, certain branches of the Company
obtained the approval in the first half year of 2017 and were entitled to this preferential income tax rate of 15% until 2020.
INTERIM REPORT 2018
23

11 Basic and diluted earnings per share
(a) Basic
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted
average number of ordinary shares in issue during the period.
Unaudited
2018 2017
Profit attributable to owners of the Company (in RMB million) 1,210 1,120
Weighted average number of ordinary shares in issue (million) 129,345 129,345
Basic earnings per share (in RMB Yuan) 0.0094 0.0087
(b) Diluted
During the six months ended 30 June 2018 and 2017, there were no potential dilutive ordinary shares and diluted
earnings per share was equal to basic earnings per share.
12 Property, plant and equipment and construction in progress
(a) Acquisition of property, plant and equipment and construction in progress
During the six months ended 30 June 2018, the Company acquired items of property, plant and equipment and
construction in progress with a cost of RMB8,071 million (for the six months ended 30 June 2017: RMB18,483 million).
(b) Write off of property, plant and equipment
Property, plant and equipment with a net book value of approximately RMB442 million were written off during the six
months ended 30 June 2018 (for the six months ended 30 June 2017: approximately RMB702 million).
13 Long-term prepayments
Long-term prepayments mainly represent the prepayments for site ground lease for period from 3 to 10 years generally
and land use rights of tower sites for period from 10 to 30 years generally. For the six months ended 30 June 2018,
the amortisation of land use rights amounted to approximately RMB15 million (for the six months ended 30 June 2017:
approximately RMB14 million).
Short-term prepayments for site ground lease are recorded as advance prepayments in Note 16.

14 Other non-current assets
Unaudited Audited
As at As at
30 June 2018 31 December 2017
Input VAT recoverable — non-current portion 12,455 12,337

Others (Note) 125 122
12,580 12,459
Note:
Others primarily include purchased software used by the Company, which are recognised at their initial costs and amortised over their estimated useful lives
(generally 5 –10 years).
15 Trade and other receivables
Unaudited Audited
As at As at
Trade receivables (Note (a)) 14,246 10,926

Less: allowance for impairment of trade receivables — —
Trade receivables — net 14,246 10,926
Deposits (Note (b)(i)) 478 689

Payments on behalf of customers (Note (b)(ii)) 4,654 3,639
Others 8 8
Other receivables 5,140 4,336
Trade and other receivables 19,386 15,262
As at 30 June 2018 and 31 December 2017, trade and other receivables were primarily denominated in RMB and their
carrying amounts approximated their fair values.
INTERIM REPORT 2018
25

15 Trade and other receivables (continued)
Note:
(a) Trade receivables
Aging analysis of the Company’s gross trade receivables based on the billing at the respective balance sheet dates is as follows:
Unaudited Audited
As at As at
Up to three months 14,231 10,926
Three to six months 15 —
14,246 10,926
Trade receivables primarily comprise receivables from the Three TSPs. As at 30 June 2018, the trade receivables from the Three TSPs accounted for
98.0% of the total trade receivables (31 December 2017: 99.4%).
Trade receivables from customers are mainly due for payment within one to three months from the date of billing. Customers with balances that are
overdue or exceed credit limits are required to settle all outstanding balances before any further services can be provided. As at 30 June 2018 and 31
December 2017, there was no trade receivable past due and impaired.
(b) Other receivables
(i) Deposits primarily include deposits for site ground lease and office premises lease or building and equipment purchase. The carrying amount of
deposits do not differ significantly from their fair values.
(ii) Payments on behalf of customers mainly represent the payments made by the Company to third parties, on behalf of customers for certain sites
electric power charges when the Company provides the services of power access to its customers and acting as an agent.

15 Trade and other receivables (continued)
(c) Impairment
The Company applies the simplified approach to provide for expected credit losses prescribed by IFRS 9, which permits the use of the lifetime
expected loss provision for trade receivables and payments on behalf of customers. To measure the expected credit losses, these receivables have
been grouped based on shared credit risk characteristics and the aging from billing.
As at 30 June 2018 and 31 December 2017, trade receivables and payments on behalf of customers with amounts that are individually significant
have been separately assessed for impairment. The Company makes periodic assessments on the recoverability of these receivables based on the
background and reputation of the customers, historical settlement records and past experience. Since there has not been any history of default
payments by existing customers, so management considers that the expected credit loss is close to zero, and no provision for impaired receivables has
been made during the periods presented.
As at 30 June 2018 and 31 December 2017, the above other receivables, rather than the payments on behalf of customers were considered to have
low credit risks. Based on management assessment, no impairment provision has been made in the periods presented.
16 Prepayments and other current assets
Unaudited Audited
As at As at
Advance prepayments (Note 13) 3,188 2,546

Input VAT recoverable — Current portion 4,809 4,829
7,997 7,375
17 Cash and cash equivalents
Unaudited Audited
As at As at
Cash at bank and on hand 14,875 7,852

INTERIM REPORT 2018
27

18 Share capital
Ordinary shares, issued and fully paid:
Number of
Shares Share capital
(million) (RMB million)
At 30 June 2018 and 31 December 2017

(RMB1.00, par value) 129,345 129,345
As at 30 June 2018, the share capital of the Company amounted to RMB129,345 million, consisting of 129,345 million
shares with a par value of RMB1.00 per share (31 December 2017: same). China Mobile Company, China Unicom
Corporation, China Telecom and China Reform hold 38.0%, 28.1%, 27.9% and 6.0% of the equity interests in the
Company, respectively.
19 Interest-bearing liabilities
(a) Borrowings
Unaudited Audited
As at As at
Borrowings: RMB million RMB million
Long-term borrowings (Note (i))

— General Borrowings 44,276 35,200
— Preferential Borrowings 9,961 10,524
54,237 45,724
Less: Current portion (2,177) (1,931)
Balance presented in non-current liabilities 52,060 43,793
Short-term borrowings (Note (ii)) 96,839 93,329

Long-term borrowings — Current portion 2,177 1,931
Balance presented in current liabilities 99,016 95,260


19 Interest-bearing liabilities (continued)
(a) Borrowings (continued)
Note:
(i) In 2015 and 2016, the Company obtained unsecured long-term RMB denominated loans from China Development Bank via China Development
Fund Co., Ltd (the “Preferential Borrowings”) at a preferential interest rate, as the government granted a loan interest subsidy to the Company.
The Company obtained unsecured general borrowings (the “General Borrowings”) from banks with maturity of two to three years, and the
carrying amount of these General Borrowings were RMB44,276 million at 30 June 2018 (31 December 2017: RMB35,200 million).
For the six months ended 30 June 2018, the effective interest rates of all long-term borrowings were 4.41% to 4.75% per annum (for the six
months ended 30 June 2017: 4.41% per annum).
(ii) As at 30 June 2018, short-term bank borrowings amounted to RMB79,580 million (31 December 2017: RMB74,020 million). In addition, short-
term borrowings include short-term loans from China Mobile Communications Group Co., Ltd (“CMCC”) and China Mobile Group Finance Co.,
Ltd. (a subsidiary of China Mobile Company) of RMB17,259 million as at 30 June 2018 (31 December 2017: RMB19,309 million). For the six
months ended 30 June 2018, all short-term borrowings are unsecured, which bear interest rates ranging from 2.35% to 4.48% per annum (for
the six months ended 30 June 2017: 2.35% to 4.13% per annum).
(b) Deferred consideration payables
Unaudited Audited
As at As at
Deferred consideration payables

— Deferred consideration 12,961 12,961
— Input VAT 2,776 4,291
15,737 17,252
After the completion of the purchase of the Tower Assets from its shareholders in 2015, the Company should pay
a cash consideration of RMB94,866 million and to be settled before 31 December 2017. As at 31 December 2017,
the remaining consideration payable to CMCC of RMB12,961 million was further deferred and to be settled before
31 December 2018, such balance bears interest that benchmarked the financial institution’s one-year lending rate
announced by the People’s Bank of China (the “PBOC”).
INTERIM REPORT 2018
29

19 Interest-bearing liabilities (continued)
(c) The repayment schedule of the interest-bearing liabilities
Interest-bearing liabilities are repayable as follows:
Unaudited Audited
As at As at
Within one year 114,753 112,512
Between one and two years 11,225 11,276
Between two and five years 38,657 29,608
Over five years 2,178 2,909
166,813 156,305
(d) The carrying amounts and fair value of the non-current interest-bearing liabilities
The carrying values of non-current interest-bearing liabilities approximate their fair values, as the impact of
discounting is not significant. The fair values are based on cash flows discounted using the prevailing market
interest rates as at 30 June 2018 and 31 December 2017. They are within level 3 of the fair value hierarchy.
20 Deferred revenue
Deferred revenue mainly represents the government grants obtained by the Company including the interest subsidy
associated with the Preferential Borrowings (see Note 19 (a) (i)).

21 Accounts payable
Accounts payable primarily include payables for construction expenditures, repairs and maintenance and other operation
expenditures. Accounts payable are unsecured, non-interest bearing and are repayable in accordance with contractual
terms. Accounts payable are all denominated in RMB. Their carrying amounts approximate their fair values due to their
short-term maturities.
The aging analysis of accounts payable is as follows:
Unaudited Audited
As at As at

Less than six months 24,052 27,898

Six months to one year 3,068 2,690
More than one year 1,250 1,318
28,370 31,906
22 Accrued expenses and other payables
Unaudited Audited
As at As at
Deposits from vendors 1,167 1,045

Salary and welfare payables 997 436
Interest payable 827 3,144
Accrued expenses 138 464
Other tax payables 69 137
Others 79 145
3,277 5,371
Accrued expenses and other payables (excluding the non-financial liabilities) are all denominated in RMB. Their carrying
amounts approximate their fair values due to their short-term maturities.
INTERIM REPORT 2018
31

23 Dividend
No dividend has been declared or paid during the six months ended 30 June 2018.
24 Contingencies
As at 30 June 2018 and 31 December 2017, the Company has no material contingencies.
25 Commitments
(a) Capital commitments
The Company had capital commitments for construction expenditures as follows:
Unaudited Audited
As at As at
Authorised but not contracted for:

No later than one year 295 2,231
Later than one year and no later than five years — —
295 2,231
Authorised and contracted for:

No later than one year 895 446
Later than one year and no later than five years — —
895 446

25 Commitments (continued)
(b) Operating lease commitments
The Company leases office premises and site properties for telecommunication towers (as lessee) under non-
cancellable operating lease agreements.
The future aggregate minimum lease payments under these non-cancellable operating leases are as follows:
Unaudited Audited
As at As at
No later than one year 7,886 5,539

Later than one year and no later than five years 9,240 9,456
Later than five years 4,618 4,999
21,744 19,994
As at 30 June 2018, the Company had future aggregate minimum lease receipts under non-cancellable operating
leases (as lessor) during the leasing period (five years) amounting to RMB278,717 million (31 December 2017:
RMB286,165 million).
26 Related party transactions
The Company is limited liability company established in the PRC. As at 30 June 2018, the Company’s shareholders
are China Mobile Company, China Unicom Corporation, China Telecom and China Reform. The parent companies
of the Three TSPs are CMCC, China United Network Communications Group Company Limited (“CUC”) and China
Telecommunications Corporation (“CTC”), respectively, which are state-owned enterprises ultimately controlled by the
PRC government. As a result, CMCC, CUC, CTC, China Reform, the Three TSPs and their subsidiaries are all considered
as the Company’s related parties.
CMCC together with China Mobile Company and all their subsidiaries are hereinafter referred to as “CMCC Group”; CUC
together with China Unicom Corporation and all their subsidiaries are hereinafter referred to as “CUC Group”; and CTC
together with China Telecom and all their subsidiaries are hereinafter referred to as “CTC Group”.
INTERIM REPORT 2018
33

26 Related party transactions (continued)
(a) Significant transactions with related parties
Unaudited
Note 2018 2017
Provision of Tower business, DAS and other services (i) 35,023 33,250
Purchases of various goods and services (ii) 3,375 3,799
Rental charges for property and site ground lease (iii) 340 424
Payments on behalf of related parties (iv) 10,056 7,858
Short-term borrowings and interests (v)
— Principals 6,000 2,350
— Interests 349 104
Interest expenses in related to the deferred consideration (vi) 343 1,992
Note:
(i) Provision of Tower business, DAS and other services:
The provisions of the above Tower business, DAS and other services are based on the agreed terms in the Commercial Pricing Agreements
signed by the Company and the Three TSPs, and set out in the individual site service agreements between the provincial branches of the
Company and the provincial subsidiaries/branches of the Three TSPs. The prices are determined on a cost plus margin basis, adjusted for
different elements including tenancy co-sharing discount, area adjustment rate for different provincial standard construction costs and related
operation costs. In early 2018, the Company entered into the Supplemental Agreement to the Commercial Pricing Agreements with each of the
China Mobile Company, China Unicom Corporation and China Telecom (see Note 6 for details).
(ii) Purchases of various goods and services
The Company purchases certain equipment, engineering design services, construction and supervision services, maintenance services,
communications and IT services from CMCC Group, CUC Group and CTC Group. The transaction prices are mainly determined in accordance
with relevant market price or cost-plus basis if no market price or the market price cannot be properly determined.

(a) Significant transactions with related parties (continued)
(iii) Rental charges for property and site ground lease
The Company leases certain properties, site ground and warehouses from CMCC Group, CUC Group and CTC Group. The rents and management
fees are charged to the Company are mainly determined with reference to the market price or cost-plus basis if no market price or the market price
cannot be properly determined.
(iv) Payments on behalf of related parties

As mentioned in Note 15 (b) (ii), the Company paid certain sites electric power charges to electricity power companies or third parties, on behalf
of the Three TSPs.
(v) Short-term borrowings and interests
The Company obtained the short-term borrowings from CMCC and China Mobile Group Finance Co., Ltd. (a subsidiary of China Mobile
Company). These borrowings are unsecured, with interest rates determined by benchmarking to the financial institution’s one-year lending rate
announced by the PBOC. These short-term borrowings have a maturity period of 3 to 12 months.
(vi) Interest expenses in related to the deferred consideration
As mentioned in Note 19 (b), the Company has to pay interests on the deferred consideration (and related VAT) associated with the acquisition
of the Tower Assets.
(b) Balances with related parties
(i) Amount due from related parties
Unaudited Audited
As at As at
Trade and other receivables(1) 18,786 15,041

Prepayments and other current assets(2) 551 590
(1) Trade and other receivables with related parties mainly arose from provision of the Tower business, DAS services and other services
(Note 26 (a) (i) and (iv)).
(2) The balances of prepayments and other current assets at each of the period/year end mainly arise from the leasing of certain properties
and site ground from related parties as described in Note 26 (a) (iii).
INTERIM REPORT 2018
35

(b) Balances with related parties (continued)
(ii) Amount due to related parties
Unaudited Audited
As at As at
Accounts payable 4,980 7,596
Accrued expenses and other payables 775 3,157
Apart from the balances of interest payables (non-trade) included in the Accrued expenses and other
payables arising from the transactions described in Note 26 (a) (v) and (vi), amounts due to related parties
mainly arise from the ordinary course of business in respect of transactions with related parties, such as the
purchase of goods and services described in Note 26 (a) (ii) and (iii).
All the balances of amount due from/to related parties are unsecured, non-interest bearing and repayable on
demand.
(iii) Deferred consideration payables
The balances of deferred consideration payables (non-trade) was RMB15,737 million at 30 June 2018
(31 December 2017: RMB17,252 million), arising from the acquisition of Tower Assets in 2015.
(iv) Short-term borrowings from related parties
The balances of short-term borrowings from related parties (non-trade) was RMB17,259 million at 30 June
2018 (31 December 2017: RMB19,309 million), arising from the short-term borrowings with certain related
parties as described in Note 26 (a) (v).
27 Fair value estimation
As at 30 June 2018, the Company has no financial assets and financial liabilities measured at fair value. The financial
assets and financial liabilities that are not carrying at fair values mainly include trade and other receivables, accounts
payable, other payables, deferred consideration payables and borrowings. The Company measures these financial
assets and financial liabilities at amortised cost. As at 30 June 2018, the Company considers that their carrying values
approximate fair values due to the short maturity of the instruments and/or they are bearing interests at prevailing market
rates.
Other Information
SUBSEQUENT EVENTS
During the period for the six months ended 30 June 2018, the Company continued to proceed with the issuance of H Shares
by way of an initial public offering and the listing of H Shares on the Main Board of the Hong Kong Stock Exchange. On 25
July 2018, the Company published and distributed the prospectus (the “Prospectus”) in relation to the global offering of the
Company’s H shares (the “Global Offering”) in Hong Kong. The total number of H Shares initially offered under the Global
Offering of the Company was 43,114,800,000 Shares (prior to the exercise of the over-allotment option) and the offer price
was HK$1.26 per share. The Company intends to apply the proceeds in the manner as disclosed in the Prospectus.
The joint representatives (on behalf of the international underwriters) may request the Company to issue up to an aggregate
of no more than 6,467,220,000 additional H Shares by exercising the over-allotment option within 30 days from the last
day for lodging of application under the Hong Kong public offering (being 31 July 2018). As at 15 August 2018 (the “Latest
Practicable Date”, being the latest practicable date prior to the printing of this 2018 interim report for the purpose of
ascertaining certain information contained in this 2018 interim report), the over-allotment option has not been exercised.
On 8 August 2018 (the “Listing Date”) , the H Shares of the Company were listed and commenced trading on the Hong Kong
Stock Exchange under the stock code of 0788 (for details, please refer to the Prospectus).
SHARE CAPITAL
As at the Listing Date and the Latest Practicable Date, the Company’s total share capital was RMB172,459,415,024
(prior to the over-allotment option), comprising 172,459,415,024 Shares with a nominal value of RMB1.00 each, of
which, 129,344,615,024 Shares were domestic shares issued to original shareholders before the Global Offering and
43,114,800,000 Shares were H shares newly issued pursuant to the Global Offering.
PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S SECURITIES
Throughout the period from the Listing Date up to the Latest Practicable Date, the Company has not purchased, sold or
redeemed any of the Company’s listed securities.
INTERIM REPORT 2018
37
Other Information
CHANGE OF INFORMATION OF DIRECTORS AND SUPERVISORS SINCE THE DATE OF

THE PROSPECTUS
Since the date of the Prospectus, there is no other information of the Directors or Supervisors required to be disclosed
pursuant to Rule 13.51B(1) of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
(the “Listing Rules”). The biographical details of the Directors and Supervisors are available on the website of the Company
(www.china-tower.com).
DIRECTORS’, SUPERVISORS’ AND THE COMPANY’S CHIEF EXECUTIVE’S INTERESTS

AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES OF
THE COMPANY AND ITS ASSOCIATED CORPORATIONS
As the Company was not listed on the Hong Kong Stock Exchange as of 30 June 2018, the provisions of Divisions 7 and 8 of
Part XV of the Securities and Futures Ordinance (the “SFO”) and Section 352 of the SFO were not applicable to the Directors,
Supervisors or chief executive of the Company during the six months ended 30 June 2018.
As at the Listing Date, none of the Directors, Supervisors and chief executive of the Company had any interests and/or short
positions in the Shares, underlying shares or debentures of the Company or its associated corporations (within the meaning of
Part XV of the SFO) which will have to be notified to the Company and the Hong Kong Stock Exchange pursuant to Divisions 7
and 8 of Part XV of the SFO (including interests or short positions which he is taken or deemed to have under such provisions
of the SFO) or which will be required, pursuant to Section 352 of the SFO, to be entered in the register referred to therein, or
will be required, pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”)
set out in Appendix 10 to the Listing Rules, to be notified to the Company and the Hong Kong Stock Exchange.
As at the Listing Date, the Company has not granted its Directors, Supervisors or chief executive of the Company, or their
respective spouses or children below the age of 18 any rights to subscribe for the shares or debentures of the Company
or any of its associated corporations and none of them has ever exercised any such right to subscribe for the shares or
debentures of the Company.
Other Information
MATERIAL INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING

SHARES OF THE COMPANY
As the Company was not listed on the Hong Kong Stock Exchange as of 30 June 2018, the provisions of Divisions 2 and 3
of Part XV of the SFO and Section 336 of the SFO were not applicable to the Company during the six months ended 30 June
2018.
As at the Listing Date, so far as is known to the Directors, the following persons (other than Directors, Supervisors or chief
executive of the Company) had, or were deemed or taken to have interests or short positions in the Shares or underlying
shares of the Company which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV
of the SFO or, which were entered in the register required to be kept by the Company pursuant to section 336 of the SFO:
Percentage of Percentage of
shares in the shares in the Long position/
relevant class total shares Short position/
Class of Number of of shares of the in issue of the Interest in a
Name of shareholder Nature of interest shares shares held Company (%) Company (%) lending pool
China Mobile Communications Interest held by controlled Domestic 49,150,953,709 38.00% 28.50% Long position
Group Co., Ltd. corporations Shares
(中國移動通信集團
有限公司)(“CMCC”)(1)
China Mobile (Hong Kong) Interest held by controlled Domestic 49,150,953,709 38.00% 28.50% Long position
Group Limited corporations Shares
中國移動(香港)集團
有限公司(1)
China Mobile Hong Kong Interest held by controlled Domestic 49,150,953,709 38.00% 28.50% Long position
(BVI) Limited corporations Shares
中國移動香港(BVI)
有限公司(1)
China Mobile Limited Interest held by controlled Domestic 49,150,953,709 38.00% 28.50% Long position
(中國移動有限公司) corporations Shares
(“China Mobile”)(1)
China Mobile Communication Legal and Domestic 49,150,953,709 38.00% 28.50% Long position
Company Limited beneficial owner Shares
(中國移動通信有限公司)
(“China Mobile Company”)(1)
INTERIM REPORT 2018
39
Other Information
China United Network Interest held by Controlled Domestic 36,345,836,822 28.10% 21.08% Long position
Communications Group corporations Shares
Company Limited
(中國聯合網絡通信集團有限
公司)(“CUC”)(2)
China United Network Interest held by Controlled Domestic 36,345,836,822 28.10% 21.08% Long position
Communications Limited corporations Shares
(中國聯合網絡通信股份
有限公司)
(“China Unicom A Share
Company”)(2)
China Unicom (BVI) Limited Interest held by controlled Domestic 36,345,836,822 28.10% 21.08% Long position
中國聯通(BVI)有限公司(2) corporations Shares
China Unicom (Hong Kong) Interest held by controlled Domestic 36,345,836,822 28.10% 21.08% Long position
Limited corporations Shares
(中國聯合網絡通信(香港)
股份有限公司)
(“China Unicom”)(2)
China United Network Legal and beneficial owner Domestic 36,345,836,822 28.10% 21.08% Long position
Communications Corporation Shares
Limited
(中國聯合網絡通信
有限公司)
(“China Unicom
Corporation”)(2)
China Telecommunications Interest held by Controlled Domestic 36,087,147,592 27.90% 20.93% Long position
Corporation corporations Shares
(中國電信集團有限公司)
(“CTC”)(3)
China Telecom Corporation Legal and Domestic 36,087,147,592 27.90% 20.93% Long position
Limited beneficial owner Shares
(中國電信股份有限公司)
(“China Telecom”)(3)
Other Information
China Reform Holdings Legal and Domestic 7,760,676,901 6.00% 4.50% Long position
Corporation Ltd. beneficial owner Shares
(中國國新控股有限責任
公司)(“China Reform”)
Hillhouse Capital Management, Investment manager H Shares 2,522,704,000 5.85% 1.46% Long position
Ltd.(4) (“Hillhouse Capital”)
Gaoling Fund, L.P.(4) Legal and beneficial owner H Shares 2,331,262,000 5.41% 1.35% Long position
(“Gaoling”)
The Goldman Sachs Interest held by Controlled H Shares 1,522,550,000 3.53% 0.88% Long position
Group, Inc. corporations(5)
Interest held by Controlled H Shares 51,610,000 0.12% 0.03% Short position

corporations(5)
Interests held jointly with H Shares 6,467,220,000 15.00% 3.75% Long position
another person(6)
Interests held jointly with H Shares 6,467,220,000 15.00% 3.75% Short position
another person(6)
Goldman Sachs (Asia) Corporate Interests held jointly with H Shares 6,467,220,000 15.00% 3.75% Long position
Holdings L.L.C.(6) another person
another person
Goldman Sachs Holdings Interests held jointly with H Shares 6,467,220,000 15.00% 3.75% Long position
(Asia Pacific) Limited(6) another person
another person
INTERIM REPORT 2018
41
Other Information
Goldman Sachs Holdings Interests held jointly with H Shares 6,467,220,000 15.00% 3.75% Long position
(Hong Kong) Limited(6) another person
another person
Goldman Sachs (Asia) L.L.C.(6) Interests held jointly with H Shares 6,467,220,000 15.00% 3.75% Long position
another person
another person
HSBC Holdings PLc (7) Interest held by controlled H Shares 6,467,220,000 15.00% 3.75% Long position
corporations
HSBC Finance (Netherlands)(7) Interest held by controlled H Shares 6,467,220,000 15.00% 3.75% Long position
corporations
HSBC Holdings B.V.(7) Interest held by controlled H Shares 6,467,220,000 15.00% 3.75% Long position
corporations
HSBC Asia Holdings Interest held by controlled H Shares 6,467,220,000 15.00% 3.75% Long position
(UK) Limited (7) corporations
HSBC Asia Holdings BV(7) Interest held by controlled H Shares 6,467,220,000 15.00% 3.75% Long position
corporations
The Hongkong and Shanghai Underwriter H Shares 6,467,220,000 15.00% 3.75% Long position
Banking Corporation Limited(7)
Other Information
Citigroup Inc. Person having a security H Shares 714,799,998 1.66% 0.41% Long position
interest in shares
Interest held by controlled H Shares 880,464,002 2.04% 0.51% Long position

corporations
Interest held by controlled H Shares 972,050,000 2.25% 0.56% Short position

corporations
Approved lending agent H Shares 1,214,101,160 2.81% 0.70% Interest in a

lending pool/
Long position
The Capital Group Companies, Interest held by controlled H Shares 2,285,654,000 5.30% 1.33% Long position
Inc. corporations
Notes:
(1) By virtue of the SFO, each of CMCC, China Mobile (Hong Kong) Group Limited, China Mobile Hong Kong (BVI) Limited and China Mobile is deemed to have
an interest in the Shares held by China Mobile Company.
(2) By virtue of the SFO, each of CUC, China Unicom A Share Company, China Unicom (BVI) Limited and China Unicom is deemed to have an interest in the
Shares held by China Unicom Corporation.
(3) By virtue of the SFO, CTC is deemed to have an interest in the Shares held by China Telecom.
(4) Hillhouse Capital Management, Ltd. is the sole investment manager and the sole general partner of Gaoling and YHG Investment, L.P. (“YHG”) (which held
160,292,000 H Shares as at the Listing Date) respectively. Hillhouse Capital is deemed to be interested in the H Shares held by Gaoling and YHG. By virtue
of the SFO, Hillhouse Capital Management Ltd. is deemed to have an interest in the Shares held by Hillhouse InRe Fund, L.P., which held 31,150,000 H
Shares as at the Listing Date.
(5) By virtue of the SFO, The Goldman Sachs Group, Inc. is deemed to have an interest in the Shares held by Goldman Sachs International, which held
1,522,550,000 H Shares (Long position) and 51,610,000 H Shares (Short position) as at the Listing Date.
(6) By virtue of the SFO, each of The Goldman Sachs Group, Inc., Goldman Sachs (Asia) Corporate Holdings L.L.C., Goldman Sachs Holdings (Asia Pacific)
Limited and Goldman Sachs Holdings (Hong Kong) Limited is deemed to have an interest in the Shares held by Goldman Sachs (Asia) L.L.C..
(7) By virtue of the SFO, each of HSBC Holdings PLc, HSBC Finance (Netherlands), HSBC Holdings B.V., HSBC Asia Holdings (UK) Limited and HSBC Asia
Holdings BV is deemed to have an interest in the Shares held by The Hongkong and Shanghai Banking Corporation Limited.
INTERIM REPORT 2018
43
Other Information
Save as disclosed above, as at the Listing Date, the Directors are not aware of any persons (other than the Directors,
Supervisors and chief executive of the Company) who have interests and/or short positions in the Shares or underlying shares
of the Company which would be required to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV
of the SFO or which were entered in the register required to be kept by the Company pursuant to section 336 of the SFO.
AUDIT COMMITTEE
The audit committee, together with the Company’s management, reviewed the accounting principles and practices adopted
by the Company and discussed financial reporting matters including the review of the Company’s unaudited interim
condensed financial information for the six months ended 30 June 2018.
COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE
The Company is committed to maintaining a high standard of corporate governance. During the period from the Listing Date
to the Latest Practicable Date, the Company had complied with the code provisions set out in the Corporate Governance
Code as contained in Appendix 14 to the Listing Rules (where applicable), except the deviation from Code Provision A.2.1 of
the Corporate Governance Code.
Code Provision A.2.1 of the Corporate Governance Code in Appendix 14 to the Listing Rules requires that the roles of the
chairman and chief executive should be separate and should not be performed by the same individual. Mr. Tong Jilu (“Mr.
Tong”) is the chairman of the Board and the general manager of the Company.
In view of Mr. Tong’s experience, personal profile and his roles in the Company, the Board considers it beneficial to the
business prospects and operational efficiency of the Company that Mr. Tong, in addition to acting as the chairman of the
Board, acts as the general manager of the Company. The Board believes that this structure will not impair the balance of
power and authority between the Board and the management of the Company, given that:
(i) there is sufficient check and balance in the Board as the decision to be made by the Board requires approval by at least
a majority of the Directors and our Board has three independent non-executive Directors out of the seven Directors,
which is in compliance with the Listing Rules;
(ii) Mr. Tong and the other Directors are aware of and undertake to fulfill their fiduciary duties as Directors, which require,
among other things, that they act for the benefit and in the best interest of the Company and make decisions for the
Company accordingly;
(iii) the balance of power and authority is ensured by the operations of the Board which comprises experienced and high
caliber individuals who meet regularly to discuss issues affecting the operations of the Company; and
(iv) the overall strategic and other key business, financial, and operational policies of the Company are made collectively
after thorough discussion at both Board and senior management levels.
Other Information
COMPLIANCE WITH THE MODEL CODE
The Company has adopted the Code of Conduct for Securities Transactions by the Directors, Supervisors and Relevant
Employees of China Tower Corporation Limited (the “Company Code”) which is substantially based on the Model Code set
out in Appendix 10 to the Listing Rules and is on terms no less exacting than those in the Model Code.
As the Company was not listed on the Hong Kong Stock Exchange as of 30 June 2018, the Model Code was not applicable
to the Company during the six months ended 30 June 2018. The Company has made specific enquiries to all Directors and
Supervisors, and all Directors and Supervisors have confirmed that they have complied with the Company Code and the
Model Code throughout the period from the Listing Date up to the Latest Practicable Date.
COMPLIANCE WITH APPENDIX 16 TO THE LISTING RULES

According to paragraph 40 of Appendix 16 to the Listing Rules headed “Disclosure of Financial Information”, save as
disclosed herein, the Company confirms that the Company’s current information in relation to those matters set out in
paragraph 32 of Appendix 16 has not been changed significantly from the information disclosed in the Prospectus.
FORWARD LOOKING STATEMENTS
The performance and the results of the operations of the Company contained in this 2018 interim report are historical in
nature, and past performance is no guarantee of the future results of the Company. Any forward-looking statements and
opinions contained within this 2018 interim report are based on current plans, estimates and projections, and therefore
involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking
statements and opinions. The Company, the Directors and the employees of the Company assume (a) no obligation to correct
or update the forward-looking statements or opinions contained in the 2018 interim report; and (b) no liability in the event that
any of the forward-looking statements or opinions do not materialise or turn out to be incorrect.

Interim 中 期 報 告: Stock Code: 0788 0788

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Interim 中 期 報 告: Stock Code: 0788 0788

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CHINA TOWER CORPORATION LIMITED 中國鐵塔股份有限公司

9 Report on Review of Interim Financial Information

10 Unaudited Interim Condensed Statement of Comprehensive Income

11 ​Unaudited Interim Condensed Balance Sheet

13 Unaudited Interim Condensed Statement of Changes in Equity

14 Unaudited Interim Condensed Statement of Cash Flows

15 ​Notes to Unaudited Interim Condensed Financial Information

Profit attributable to the owners of the Company

(III) Leveraged site resources to expand TSSAI business

CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY

(I) Reinforce commanding industry leadership and realize sustainable growth

(II) Promote resources-sharing strategy to create higher value

(III) Implement sophisticated management to support effective operations

Beijing, China, 10 August 2018

1. Operating profit is the operating revenue minus the operating expenses.

multiplying the resulting value by 100%.

Telecom Corporation Limited.

• Depreciation and amortisation

• Site operating lease charges

• Repair and maintenance

• Employee benefits and expenses

• Other operating expenses

over the same period last year.

CAPITAL EXPENDITURE AND CASH FLOW

BALANCE SHEET STATUS

Report on Review of Interim Financial Information

To the Board of Directors of China Tower Corporation Limited

Hong Kong, 10 August 2018

Unaudited Interim Condensed Statement of

Operating revenue 6 35,335 33,272

Repairs and maintenance (2,990) (2,846)

Operating profit 4,760 4,108

Profit before taxation 1,585 1,608

Profit for the period and Profit attributable to the owners

Total comprehensive income for the period 1,210 1,120

Basic and diluted earnings per share (in RMB Yuan)

Unaudited Interim Condensed Balance Sheet

Total assets 328,774 322,643

Equity and liabilities

Total equity 128,705 127,495

Unaudited Interim Condensed Balance Sheet (continued)

Total liabilities 200,069 195,148

Total equity and liabilities 328,774 322,643

Unaudited Interim Condensed Statement of

Balance at 1 January 2017 129,345 (3,793) 125,552

Profit for the period — 1,120 1,120

Balance at 30 June 2017 129,345 (2,673) 126,672

Balance at 1 January 2018 129,345 (1,850) 127,495

Profit for the period — 1,210 1,210

Total comprehensive income for the period — 1,210 1,210

Balance at 30 June 2018 129,345 (640) 128,705

Unaudited Interim Condensed Statement of

Cash flows from operating activities

Net cash generated from operating activities 17,173 18,946

Cash flows from investing activities

Net cash used in investing activities (14,826) (24,801)

Cash flows from financing activities

Net cash generated from/(used in) financing activities 4,676 (3,676)

Net increase/(decrease) in cash and cash equivalents 7,023 (9,531)

Cash and cash equivalents at end of period 14,875 7,718

Significant non-cash transactions:

Notes to Unaudited Interim

Interim 中期報告: Stock Code: 0788 0788

Interim 中期報告: Stock Code: 0788 0788

11 Unaudited Interim Condensed Balance Sheet

15 Notes to Unaudited Interim Condensed Financial Information